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FMB Quarterly Earnings Graphic with Coins and Arrows Showing Money Growth

Thursday, July 24, 2025

First Merchants Corporation (NASDAQ - FRME) 

Second Quarter 2025 Highlights:

  • Net income available to common stockholders was $56.4 million and diluted earnings per common share totaled $0.98 in the second quarter of 2025, compared to $39.5 million and $0.68 in the second quarter of 2024, and $54.9 million and $0.94 in the first quarter of 2025.
  • Robust capital position with Common Equity Tier 1 Capital Ratio of 11.35%.
  • Repurchased 818,480 shares totaling $31.7 million year-to-date; Repurchased 582,486 shares totaling $22.1 million during the second quarter.
  • Total loans grew $297.6 million, or 9.1% annualized, on a linked quarter basis, and $653.6 million, or 5.2%, during the last twelve months.
  • Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis.
  • Nonperforming assets to total assets were 36 basis points compared to 47 basis points on a linked quarter basis.
  • The efficiency ratio totaled 53.99% for the quarter.

"Our strong balance sheet and earnings growth in the first half of the year underscore the strength and resilience of our business model," said Mark Hardwick, Chief Executive Officer of First Merchants Bank. "With continued momentum in loan and deposit growth, expanding margins, disciplined expense management, and a robust capital position, we are well-positioned to deliver long-term value for our shareholders. We remain committed to supporting our clients and communities while navigating a dynamic economic environment with confidence and clarity."

Second Quarter Financial Results:

First Merchants Corporation (the “Corporation) reported second quarter 2025 net income available to common stockholders of $56.4 million compared to $39.5 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.98 per share compared to the second quarter of 2024 result of $0.68 per share.

Total assets equaled $18.6 billion as of quarter-end and loans totaled $13.3 billion. During the past twelve months, total loans grew by $653.6 million, or 5.2%. On a linked quarter basis, loans grew $297.6 million, or 9.1% with growth primarily in Commercial & Industrial loans.

Investments, totaling $3.4 billion, decreased $372.1 million, or 9.9%, during the last twelve months and decreased $46.2 million, or 5.4% annualized, on a linked quarter basis. The decline in the last twelve months reflected sales of available for sale securities in 2024 totaling $268.5 million.

Total deposits equaled $14.8 billion as of quarter-end and increased by $228.5 million, or 1.6%, over the past twelve months. Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis. The loan to deposit ratio of 90.1% at period end remained stable on a linked quarter basis.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $195.3 million as of quarter-end, or 1.47% of total loans. Net charge-offs totaled $2.3 million and provision for credit losses of $5.6 million was recorded during the quarter. Reserves for unfunded commitments totaling $18.0 million remain unchanged from the previous quarter. Non-performing assets to total assets were 0.36% for the second quarter of 2025, a decrease of 11 basis points compared to 0.47% in the linked quarter.

Net interest income, totaling $133.0 million for the quarter, increased $2.7 million, or 2.1%, compared to prior quarter and increased $4.4 million, or 3.5% compared to the second quarter of 2024. Fully taxable equivalent net interest margin was 3.25%, an increase of three basis points compared to the first quarter of 2025 and an increase of nine basis points compared to the second quarter of 2024. During the quarter, higher yields on earnings assets outpaced increased yields on interest bearing liabilities resulting in margin expansion.

Noninterest income totaled $31.3 million for the quarter, an increase of $1.3 million, compared to the first quarter of 2025 and was stable compared to the second quarter of 2024. The increase over first quarter of 2025 was driven primarily by higher gains on the sales of loans, treasury management fees, derivative hedge fees, and card payment fees offset by a decrease in other income associated with CRA investments.

Noninterest expense totaled $93.6 million for the quarter, an increase of $0.7 million from the first quarter of 2025. The increase was from higher marketing and data processing costs.

The Corporation’s total risk-based capital ratio equaled 13.06%, the common equity tier 1 capital ratio equaled 11.35%, and the tangible common equity ratio totaled 8.92%. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

CONFERENCE CALL

First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 9:00 a.m. (ET) on Thursday, July 24, 2025.

To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register-conf.media-server.com/register/BI605c2e360ce04cfc9c4221bda7f67a49)

To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/ced58zg3) during the time of the call. A replay of the webcast will be available until July 24, 2026.

Detailed financial results are reported on the attached pages.

About First Merchants Corporation

First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

Forward-Looking Statements

This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements about First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statements, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.

* * * *

CONSOLIDATED BALANCE SHEETS    
(Dollars In Thousands) June 30,
 2025  2024
ASSETS    
Cash and due from banks $                        81,567  $                      105,372
Interest-bearing deposits                          223,343                           168,528
Investment securities available for sale                      1,358,130                       1,618,893
Investment securities held to maturity, net of allowance for credit losses                      2,022,826                       2,134,195
Loans held for sale                            28,783                             32,292
Loans                    13,296,759                     12,639,650
Less: Allowance for credit losses - loans                        (195,316)                         (189,537)
Net loans                    13,101,443                     12,450,113
Premises and equipment                          122,808                           133,245
Federal Home Loan Bank stock                            47,290                             41,738
Interest receivable                            93,258                             97,546
Goodwill                          712,002                           712,002
Other intangibles                            16,797                             23,371
Cash surrender value of life insurance                          305,695                           306,379
Other real estate owned                                 177                               4,824
Tax asset, deferred and receivable                            97,749                           107,080
Other assets                          380,909                           367,845
TOTAL ASSETS $                 18,592,777  $                 18,303,423
LIABILITIES    
Deposits:    
Noninterest-bearing $                   2,197,416  $                   2,303,313
Interest-bearing                    12,600,162                     12,265,757
Total Deposits                    14,797,578                     14,569,070
Borrowings:    
Federal funds purchased                            85,000                           147,229
Securities sold under repurchase agreements                          114,758                           100,451
Federal Home Loan Bank advances                          898,702                           832,703
Subordinated debentures and other borrowings                            62,617                             93,589
Total Borrowings                      1,161,077                       1,173,972
Interest payable                            16,174                             18,554
Other liabilities                          269,996                           329,302
Total Liabilities                    16,244,825                     16,090,898
STOCKHOLDERS' EQUITY    
Preferred Stock, $1,000 par value, $1,000 liquidation value:    
Authorized -- 600 cumulative shares    
Issued and outstanding - 125 cumulative shares                                 125                                  125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:    
Authorized -- 10,000 non-cumulative perpetual shares    
Issued and outstanding - 10,000 non-cumulative perpetual shares                            25,000                             25,000
Common Stock, $.125 stated value:    
Authorized -- 100,000,000 shares    
Issued and outstanding - 57,272,433 and 58,045,653 shares                              7,159                               7,256
Additional paid-in capital                      1,163,170                       1,191,193
Retained earnings                      1,342,473                       1,200,930
Accumulated other comprehensive loss                        (189,975)                         (211,979)
Total Stockholders' Equity                      2,347,952                       2,212,525
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $                 18,592,777  $                 18,303,423
CONSOLIDATED STATEMENTS OF INCOME Three Months Ended  Six Months Ended
(Dollars In Thousands, Except Per Share Amounts) June 30,  June 30,
 2025  2024  2025  2024
INTEREST INCOME        
Loans:        
Taxable $                 195,173  $                 201,413  $                 382,901  $                 399,436
Tax-exempt                      10,805                         8,430                       21,337                       16,620
Investment securities:        
Taxable                        8,266                         9,051                       16,638                       17,799
Tax-exempt                      12,516                       13,613                       25,033                       27,224
Deposits with financial institutions                        1,892                         2,995                         4,264                         9,488
Federal Home Loan Bank stock                        1,083                             879                         2,080                         1,714
Total Interest Income                    229,735                     236,381                     452,253                     472,281
INTEREST EXPENSE        
Deposits                      84,241                       99,151                     164,788                     197,436
Federal funds purchased                            965                             126                         1,777                             126
Securities sold under repurchase agreements                            663                             645                         1,405                         1,677
Federal Home Loan Bank advances                        9,714                         6,398                       19,078                       13,171
Subordinated debentures and other borrowings                        1,138                         1,490                         1,921                         4,237
Total Interest Expense                      96,721                     107,810                     188,969                     216,647
NET INTEREST INCOME                    133,014                     128,571                     263,284                     255,634
Provision for credit losses                        5,600                       24,500                         9,800                       26,500
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES                    127,414                     104,071                     253,484                     229,134
NONINTEREST INCOME        
Service charges on deposit accounts                        8,566                         8,214                       16,638                       16,121
Fiduciary and wealth management fees                        8,831                         8,825                       17,475                       17,025
Card payment fees                        4,932                         4,739                         9,458                         9,239
Net gains and fees on sales of loans                        5,849                         5,141                       10,871                         8,395
Derivative hedge fees                            831                             489                         1,235                             752
Other customer fees                            401                             460                             816                             887
Earnings on cash surrender value of life insurance                        1,913                         1,929                         4,092                         3,521
Net realized losses on sales of available for sale securities                              (1)                             (49)                               (8)                             (51)
Other income (loss)                            (19)                         1,586                             774                         2,083
Total Noninterest Income                      31,303                       31,334                       61,351                       57,972
NONINTEREST EXPENSES        
Salaries and employee benefits                      54,527                       52,214                     109,509                     110,507
Net occupancy                        6,845                         6,746                       14,061                       14,058
Equipment                        6,927                         6,599                       13,935                       12,825
Marketing                        1,997                         1,773                         3,350                         2,971
Outside data processing fees                        7,107                         7,072                       13,036                       13,961
Printing and office supplies                            272                             354                             619                             707
Intangible asset amortization                        1,505                         1,771                         3,031                         3,728
FDIC assessments                        3,552                         3,278                         7,200                         7,565
Other real estate owned and foreclosure expenses                              29                             373                             629                             907
Professional and other outside services                        3,741                         3,822                         7,002                         7,774
Other expenses                        7,096                         7,411                       14,128                       13,345
Total Noninterest Expenses                      93,598                       91,413                     186,500                     188,348
INCOME BEFORE INCOME TAX                      65,119                       43,992                     128,335                       98,758
Income tax expense                        8,287                         4,067                       16,164                       10,892
NET INCOME                      56,832                       39,925                     112,171                       87,866
Preferred stock dividends                            469                             469                             938                             938
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $                   56,363  $                   39,456  $                 111,233  $                   86,928
PER SHARE DATA:        
Basic Net Income Available to Common Stockholders $                       0.98  $                       0.68  $                       1.93  $                       1.48
Diluted Net Income Available to Common Stockholders $                       0.98  $                       0.68  $                       1.92  $                       1.48
Cash Dividends Paid to Common Stockholders $                       0.36  $                       0.35  $                       0.71  $                       0.69
Tangible Common Book Value Per Share $                     27.90  $                     25.10  $                     27.90  $                     25.10
Average Diluted Common Shares Outstanding (in thousands)                      57,773                       58,328                       58,005                       58,800

 

FINANCIAL HIGHLIGHTS        
(Dollars In Thousands) Three Months Ended  Six Months Ended
 June 30,  June 30,
 2025  2024  2025  2024
NET CHARGE-OFFS $                  2,315     $               39,644     $                  7,241     $               41,897   
        
AVERAGE BALANCES:        
Total Assets $        18,508,785    $        18,332,159    $        18,425,723    $        18,381,340  
Total Loans           13,211,729              12,620,530              13,077,288              12,548,798  
Total Earning Assets           17,158,984              17,013,984              17,060,278              17,068,917  
Total Deposits           14,632,113              14,895,867              14,526,314              14,888,536  
Total Stockholders' Equity             2,340,010                 2,203,361                 2,340,440                 2,222,750   
        
FINANCIAL RATIOS:        
Return on Average Assets 1.23 %  0.87 %  1.22 %  0.96 %
Return on Average Stockholders' Equity                       9.63                           7.16                           9.51                           7.82   
Return on Tangible Common Stockholders' Equity                     14.49                         11.29                         14.30                         12.26   
Average Earning Assets to Average Assets                     92.71                         92.81                         92.59                         92.86   
Allowance for Credit Losses - Loans as % of Total Loans                       1.47                           1.50                           1.47                           1.50   
Net Charge-offs as % of Average Loans (Annualized)                       0.07                           1.26                           0.11                           0.67   
Average Stockholders' Equity to Average Assets                     12.64                         12.02                         12.70                         12.09   
Tax Equivalent Yield on Average Earning Assets                       5.50                           5.69                           5.45                           5.67   
Interest Expense/Average Earning Assets                       2.25                           2.53                           2.22                           2.54   
Net Interest Margin (FTE) on Average Earning Assets                       3.25                           3.16                           3.23                           3.13   
Efficiency Ratio                     53.99                         53.84                         54.26                         56.47   

 

ASSET QUALITY          
(Dollars In Thousands) June 30,  March 31,  December 31,  September 30,  June 30,
 2025  2025  2024  2024  2024
Nonaccrual Loans $          67,358     $          81,922     $          73,773     $          59,088     $          61,906   
Other Real Estate Owned and Repossessions                  177                   4,966                   4,948                   5,247                   4,824   
Nonperforming Assets (NPA)             67,535                 86,888                 78,721                 64,335                 66,730   
90+ Days Delinquent               4,443                   4,280                   5,902                 14,105                   1,686   
NPAs & 90 Day Delinquent $          71,978     $          91,168     $          84,623     $          78,440     $          68,416   
          
Allowance for Credit Losses - Loans $       195,316     $       192,031     $       192,757     $       187,828     $       189,537   
Quarterly Net Charge-offs               2,315                   4,926                      771                   6,709                 39,644   
NPAs / Actual Assets % 0.36 %  0.47 %  0.43 %  0.35 %  0.36 %
NPAs & 90 Day / Actual Assets % 0.39 %  0.49 %  0.46 %  0.43 %  0.37 %
NPAs / Actual Loans and OREO % 0.51 %  0.67 %  0.61 %  0.51 %  0.53 %
Allowance for Credit Losses - Loans / Actual Loans (%) 1.47 %  1.47 %  1.50 %  1.48 %  1.50 %
Quarterly Net Charge-offs as % of Average Loans (Annualized) 0.07 %  0.15 %  0.02 %  0.21 %  1.26 %

 

CONSOLIDATED BALANCE SHEETS          
(Dollars In Thousands) June 30,  March 31,  December 31,  September 30,  June 30,
 2025  2025  2024  2024  2024
ASSETS          
Cash and due from banks $             81,567  $             86,113  $             87,616  $             84,719  $           105,372
Interest-bearing deposits              223,343               331,534               298,891               359,126               168,528
Investment securities available for sale           1,358,130            1,378,489            1,386,475            1,553,496            1,618,893
Investment securities held to maturity, net of allowance for credit losses           2,022,826            2,048,632            2,074,220            2,108,649            2,134,195
Loans held for sale                28,783                 23,004                 18,663                 40,652                 32,292
Loans         13,296,759          13,004,905          12,854,359          12,646,808          12,639,650
Less: Allowance for credit losses - loans            (195,316)             (192,031)             (192,757)             (187,828)             (189,537)
Net loans         13,101,443          12,812,874          12,661,602          12,458,980          12,450,113
Premises and equipment              122,808               128,749               129,743               129,582               133,245
Federal Home Loan Bank stock                47,290                 45,006                 41,690                 41,716                 41,738
Interest receivable                93,258                 88,352                 91,829                 92,055                 97,546
Goodwill              712,002               712,002               712,002               712,002               712,002
Other intangibles                16,797                 18,302                 19,828                 21,599                 23,371
Cash surrender value of life insurance              305,695               304,918               304,906               304,613               306,379
Other real estate owned                      177                    4,966                    4,948                    5,247                    4,824
Tax asset, deferred and receivable                97,749                 87,665                 92,387                 86,732               107,080
Other assets              380,909               369,181               387,169               348,384               367,845
TOTAL ASSETS $      18,592,777  $      18,439,787  $      18,311,969  $      18,347,552  $      18,303,423
LIABILITIES          
Deposits:          
Noninterest-bearing $        2,197,416  $        2,185,057  $        2,325,579  $        2,334,197  $        2,303,313
Interest-bearing         12,600,162          12,276,921          12,196,047          12,030,903          12,265,757
Total Deposits         14,797,578          14,461,978          14,521,626          14,365,100          14,569,070
Borrowings:          
Federal funds purchased                85,000               185,000                 99,226                 30,000               147,229
Securities sold under repurchase agreements              114,758               122,947               142,876               124,894               100,451
Federal Home Loan Bank advances              898,702               972,478               822,554               832,629               832,703
Subordinated debentures and other borrowings                62,617                 62,619                 93,529                 93,562                 93,589
Total Borrowings           1,161,077            1,343,044            1,158,185            1,081,085            1,173,972
Deposits and other liabilities held for sale                        —                         —                         —               288,476                         —
Interest payable                16,174                 13,304                 16,102                 18,089                 18,554
Other liabilities              269,996               289,247               311,073               292,429               329,302
Total Liabilities         16,244,825          16,107,573          16,006,986          16,045,179          16,090,898
STOCKHOLDERS' EQUITY          
Preferred Stock, $1,000 par value, $1,000 liquidation value:          
Authorized -- 600 cumulative shares          
Issued and outstanding - 125 cumulative shares                      125                       125                       125                       125                       125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:          
Authorized -- 10,000 non-cumulative perpetual shares          
Issued and outstanding - 10,000 non-cumulative perpetual shares                25,000                 25,000                 25,000                 25,000                 25,000
Common Stock, $.125 stated value:          
Authorized -- 100,000,000 shares          
Issued and outstanding                   7,159                    7,226                    7,247                    7,265                    7,256
Additional paid-in capital           1,163,170            1,183,263            1,188,768            1,192,683            1,191,193
Retained earnings           1,342,473            1,306,911            1,272,528            1,229,125            1,200,930
Accumulated other comprehensive loss            (189,975)             (190,311)             (188,685)             (151,825)             (211,979)
Total Stockholders' Equity           2,347,952            2,332,214            2,304,983            2,302,373            2,212,525
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $      18,592,777  $      18,439,787  $      18,311,969  $      18,347,552  $      18,303,423
          

 

CONSOLIDATED STATEMENTS OF INCOME          
(Dollars In Thousands, Except Per Share Amounts) June 30,  March 31,  December 31,  September 30,  June 30,
 2025  2025  2024  2024  2024
INTEREST INCOME          
Loans:          
Taxable $       195,173     $       187,728     $       197,536     $       206,680     $       201,413   
Tax-exempt             10,805                 10,532                   9,020                   8,622                   8,430   
Investment securities:          
Taxable               8,266                   8,372                   9,024                   9,263                   9,051   
Tax-exempt             12,516                 12,517                 12,754                 13,509                 13,613   
Deposits with financial institutions               1,892                   2,372                   5,350                   2,154                   2,995   
Federal Home Loan Bank stock               1,083                      997                      958                      855                      879   
Total Interest Income           229,735               222,518               234,642               241,083               236,381   
INTEREST EXPENSE          
Deposits             84,241                 80,547                 89,835                 98,856                 99,151   
Federal funds purchased                  965                      812                         26                      329                      126   
Securities sold under repurchase agreements                  663                      742                      680                      700                      645   
Federal Home Loan Bank advances               9,714                   9,364                   8,171                   8,544                   6,398   
Subordinated debentures and other borrowings               1,138                      783                   1,560                   1,544                   1,490   
Total Interest Expense             96,721                 92,248               100,272               109,973               107,810   
NET INTEREST INCOME           133,014               130,270               134,370               131,110               128,571   
Provision for credit losses               5,600                   4,200                   4,200                   5,000                 24,500   
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES           127,414               126,070               130,170               126,110               104,071   
NONINTEREST INCOME          
Service charges on deposit accounts               8,566                   8,072                   8,124                   8,361                   8,214   
Fiduciary and wealth management fees               8,831                   8,644                   8,665                   8,525                   8,825   
Card payment fees               4,932                   4,526                   4,957                   5,121                   4,739   
Net gains and fees on sales of loans               5,849                   5,022                   5,681                   6,764                   5,141   
Derivative hedge fees                  831                      404                   1,594                      736                      489   
Other customer fees                  401                      415                      316                      344                      460   
Earnings on cash surrender value of life insurance               1,913                   2,179                   2,188                   2,755                   1,929   
Net realized losses on sales of available for sale securities                     (1)                         (7)               (11,592)                (9,114)                      (49)   
Gain on branch sale                     —                          —                  19,983                         —                          —    
Other income (loss)                   (19)                      793                   2,826                   1,374                   1,586   
Total Noninterest Income             31,303                 30,048                 42,742                 24,866                 31,334   
NONINTEREST EXPENSES          
Salaries and employee benefits             54,527                 54,982                 55,437                 55,223                 52,214   
Net occupancy               6,845                   7,216                   7,335                   6,994                   6,746   
Equipment               6,927                   7,008                   7,028                   6,949                   6,599   
Marketing               1,997                   1,353                   2,582                   1,836                   1,773   
Outside data processing fees               7,107                   5,929                   6,029                   7,150                   7,072   
Printing and office supplies                  272                      347                      377                      378                      354   
Intangible asset amortization               1,505                   1,526                   1,771                   1,772                   1,771   
FDIC assessments               3,552                   3,648                   3,744                   3,720                   3,278   
Other real estate owned and foreclosure expenses                     29                      600                      227                      942                      373   
Professional and other outside services               3,741                   3,261                   3,777                   3,035                   3,822   
Other expenses               7,096                   7,032                   7,982                   6,630                   7,411   
Total Noninterest Expenses             93,598                 92,902                 96,289                 94,629                 91,413   
INCOME BEFORE INCOME TAX             65,119                 63,216                 76,623                 56,347                 43,992   
Income tax expense               8,287                   7,877                 12,274                   7,160                   4,067   
NET INCOME             56,832                 55,339                 64,349                 49,187                 39,925   
Preferred stock dividends                  469                      469                      469                      468                      469   
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $          56,363     $          54,870     $          63,880     $          48,719     $          39,456   
PER SHARE DATA:          
Basic Net Income Available to Common Stockholders $              0.98     $              0.95     $              1.10     $              0.84     $              0.68   
Diluted Net Income Available to Common Stockholders $              0.98     $              0.94     $              1.10     $              0.84     $              0.68   
Cash Dividends Paid to Common Stockholders $              0.36     $              0.35     $              0.35     $              0.35     $              0.35   
Tangible Common Book Value Per Share $            27.90     $            27.34     $            26.78     $            26.64     $            25.10   
Average Diluted Common Shares Outstanding (in thousands)             57,773                 58,242                 58,247                 58,289                 58,328   
FINANCIAL RATIOS:          
Return on Average Assets 1.23 %  1.21 %  1.39 %  1.07 %  0.87 %
Return on Average Stockholders' Equity                 9.63                     9.38                   11.05                     8.66                     7.16   
Return on Tangible Common Stockholders' Equity               14.49                   14.12                   16.75                   13.39                   11.29   
Average Earning Assets to Average Assets               92.71                   92.47                   92.48                   92.54                   92.81   
Allowance for Credit Losses - Loans as % of Total Loans                 1.47                     1.47                     1.50                     1.48                     1.50   
Net Charge-offs as % of Average Loans (Annualized)                 0.07                     0.15                     0.02                     0.21                     1.26   
Average Stockholders' Equity to Average Assets               12.64                   12.76                   12.51                   12.26                   12.02   
Tax Equivalent Yield on Average Earning Assets                 5.50                     5.39                     5.63                     5.82                     5.69   
Interest Expense/Average Earning Assets                 2.25                     2.17                     2.35                     2.59                     2.53   
Net Interest Margin (FTE) on Average Earning Assets                 3.25                     3.22                     3.28                     3.23                     3.16   
Efficiency Ratio               53.99                   54.54                   48.48                   53.76                   53.84   

 

LOANS          
(Dollars In Thousands) June 30,  March 31,  December 31,  September 30,  June 30,
 2025  2025  2024  2024  2024
Commercial and industrial loans $        4,440,924  $        4,306,597  $        4,114,292  $        4,041,217  $        3,949,817
Agricultural land, production and other loans to farmers              265,172               243,864               256,312               238,743               239,926
Real estate loans:          
Construction              836,033               793,175               792,144               814,704               823,267
Commercial real estate, non-owner occupied           2,171,092            2,177,869            2,274,016            2,251,351            2,323,533
Commercial real estate, owner occupied           1,226,797            1,214,739            1,157,944            1,152,751            1,174,195
Residential           2,397,094            2,389,852            2,374,729            2,366,943            2,370,905
Home equity              673,961               650,499               659,811               641,188               631,104
Individuals' loans for household and other personal expenditures              141,045               140,954               166,028               158,480               162,089
Public finance and other commercial loans           1,144,641            1,087,356            1,059,083               981,431               964,814
Loans         13,296,759          13,004,905          12,854,359          12,646,808          12,639,650
Allowance for credit losses - loans            (195,316)             (192,031)             (192,757)             (187,828)             (189,537)
NET LOANS $      13,101,443  $      12,812,874  $      12,661,602  $      12,458,980  $      12,450,113
DEPOSITS          
(Dollars In Thousands) June 30,  March 31,  December 31,  September 30,  June 30,
 2025  2025  2024  2024  2024
Demand deposits $        7,798,695  $        7,786,554  $        7,980,061  $        7,678,510  $        7,757,679
Savings deposits           4,984,659            4,791,874            4,522,758            4,302,236            4,339,161
Certificates and other time deposits of $100,000 or less              617,857               625,203               692,068               802,949               889,949
Certificates and other time deposits of $100,000 or more              891,139               896,143            1,043,068            1,277,833            1,415,131
Brokered certificates of deposits1              505,228               362,204               283,671               303,572               167,150
TOTAL DEPOSITS $      14,797,578  $      14,461,978  $      14,521,626  $      14,365,100  $      14,569,070

1 - Total brokered deposits of $1.2 billion, which includes brokered CD's of $505.2 million at June 30, 2025.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS       
(Dollars In Thousands)            
 Three Months Ended
 June 30, 2025  June 30, 2024
 Average Balance  Interest
 Income /
Expense 		 Average
Rate 		 Average Balance  Interest
 Income /
Expense 		 Average
Rate
ASSETS            
Interest-bearing deposits $           252,613  $          1,892  3.00 %  $           322,647  $          2,995  3.71 %
Federal Home Loan Bank stock                46,598               1,083  9.30                    41,749                  879  8.42   
Investment Securities: (1)            
Taxable           1,605,718               8,266  2.06               1,788,749               9,051  2.02   
Tax-exempt (2)           2,042,326            15,843  3.10               2,240,309            17,232  3.08   
Total Investment Securities           3,648,044            24,109  2.64               4,029,058            26,283  2.61   
Loans held for sale                25,411                  389  6.12                    28,585                  431  6.03   
Loans: (3)            
Commercial           9,006,650          154,108  6.84               8,691,746          160,848  7.40   
Real estate mortgage           2,200,521            25,062  4.56               2,150,591            23,799  4.43   
HELOC and installment              834,901            15,614  7.48                  823,417            16,335  7.94   
Tax-exempt (2)           1,144,246            13,677  4.78                  926,191            10,670  4.61   
Total Loans         13,211,729          208,850  6.32             12,620,530          212,083  6.72   
Total Earning Assets         17,158,984          235,934  5.50 %          17,013,984          242,240  5.69 %
Total Non-Earning Assets           1,349,801                1,318,175     
TOTAL ASSETS $      18,508,785      $      18,332,159     
LIABILITIES            
Interest-Bearing Deposits:            
Interest-bearing deposits $        5,545,158  $        35,303  2.55 %  $        5,586,549  $        40,994  2.94 %
Money market deposits           3,613,952            28,714  3.18               3,036,398            27,230  3.59   
Savings deposits           1,282,951               2,513  0.78               1,508,734               3,476  0.92   
Certificates and other time deposits           2,003,682            17,711  3.54               2,414,967            27,451  4.55   
Total Interest-Bearing Deposits         12,445,743            84,241  2.71             12,546,648            99,151  3.16   
Borrowings           1,250,519            12,480  3.99                  885,919               8,659  3.91   
Total Interest-Bearing Liabilities         13,696,262            96,721  2.82             13,432,567          107,810  3.21   
Noninterest-bearing deposits           2,186,370                2,349,219     
Other liabilities              286,143                   347,012     
Total Liabilities         16,168,775              16,128,798     
STOCKHOLDERS' EQUITY           2,340,010                2,203,361     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $      18,508,785      $      18,332,159     
Net Interest Income (FTE)   $      139,213      $      134,430   
Net Interest Spread (FTE) (4)    2.68 %      2.48 %
            
Net Interest Margin (FTE):            
Interest Income (FTE) / Average Earning Assets     5.50 %      5.69 %
Interest Expense / Average Earning Assets     2.25 %      2.53 %
Net Interest Margin (FTE) (5)    3.25 %      3.16 %
            
(1)  Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments.  Annualized amounts are computed using a 30/360 day basis.
(2)  Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024.  These totals equal $6,199 and $5,859 for the three months ended June 30, 2025 and 2024, respectively. 
(3)  Non accruing loans have been included in the average balances.
(4)  Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5)  Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

            
CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS       
(Dollars In Thousands)            
 Six Months Ended
 June 30, 2025  June 30, 2024
 Average Balance  Interest
 Income /
Expense 		 Average
Rate 		 Average Balance  Interest
 Income /
Expense 		 Average
Rate
ASSETS            
Interest-bearing deposits $           273,200  $          4,264  3.12 %  $           449,173  $          9,488  4.22 %
Federal Home Loan Bank stock                45,296               2,080  9.18                    41,757               1,714  8.21   
Investment Securities: (1)            
Taxable           1,620,005            16,638  2.05               1,785,903            17,799  1.99   
Tax-exempt (2)           2,044,489            31,687  3.10               2,243,286            34,461  3.07   
Total Investment Securities           3,664,494            48,325  2.64               4,029,189            52,260  2.59   
Loans held for sale                23,190                  708  6.11                    25,184                  759  6.03   
Loans: (3)            
Commercial           8,889,119          301,880  6.79               8,644,927          320,057  7.40   
Real estate mortgage           2,195,988            49,508  4.51               2,140,769            46,156  4.31   
HELOC and installment              831,904            30,805  7.41                  822,616            32,464  7.89   
Tax-exempt (2)           1,137,087            27,009  4.75                  915,302            21,038  4.60   
Total Loans         13,077,288          409,910  6.27             12,548,798          420,474  6.70   
Total Earning Assets         17,060,278          464,579  5.45 %          17,068,917          483,936  5.67 %
Total Non-Earning Assets           1,365,445                1,312,423     
TOTAL ASSETS $      18,425,723      $      18,381,340     
LIABILITIES            
Interest-Bearing deposits:            
Interest-bearing deposits $        5,533,858  $        69,909  2.53 %  $        5,503,185  $        80,484  2.92 %
Money market deposits           3,526,461            54,666  3.10               3,040,938            54,613  3.59   
Savings deposits           1,291,133               4,958  0.77               1,534,305               7,277  0.95   
Certificates and other time deposits           1,975,923            35,255  3.57               2,421,413            55,062  4.55   
Total Interest-Bearing Deposits         12,327,375          164,788  2.67             12,499,841          197,436  3.16   
Borrowings           1,256,688            24,181  3.85                  948,866            19,211  4.05   
Total Interest-Bearing Liabilities         13,584,063          188,969  2.78             13,448,707          216,647  3.22   
Noninterest-bearing deposits           2,198,939                2,388,695     
Other liabilities              302,281                   321,188     
Total Liabilities         16,085,283              16,158,590     
STOCKHOLDERS' EQUITY           2,340,440                2,222,750     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $      18,425,723      $      18,381,340     
Net Interest Income (FTE)   $      275,610      $      267,289   
Net Interest Spread (FTE) (4)    2.67 %      2.45 %
            
Net Interest Margin (FTE):            
Interest Income (FTE) / Average Earning Assets     5.45 %      5.67 %
Interest Expense / Average Earning Assets     2.22 %      2.54 %
Net Interest Margin (FTE) (5)    3.23 %      3.13 %
            
(1)  Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
(2)  Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024.  These totals equal  $12,326 and $11,655 for the six months ended June 30, 2025 and 2024, respectively. 
(3)  Non accruing loans have been included in the average balances.           
(4)   Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
(5)  Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.


ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE - NON-GAAP
(Dollars In Thousands, Except Per Share Amounts) Three Months Ended  Six Months Ended
 June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30,
 2025  2025  2024  2024  2024  2025  2024
Net Income Available to Common Stockholders - GAAP $            56,363  $            54,870  $            63,880  $            48,719  $            39,456  $         111,233  $           86,928
Adjustments:              
Net realized losses on sales of available for sale securities                         1                          7                 11,592                   9,114                        49                         8                       51
Gain on branch sale                        —                         —               (19,983)                         —                         —                        —                        —
Non-core expenses1,2                        —                         —                      762                         —                         —                        —                  3,481
Tax on adjustments                        —                        (2)                   1,851                 (2,220)                      (12)                        (2)                   (860)
Adjusted Net Income Available to Common Stockholders - Non-GAAP $            56,364  $            54,875  $            58,102  $            55,613  $            39,493  $         111,239  $           89,600
              
Average Diluted Common Shares Outstanding (in thousands)                57,773                 58,242                 58,247                 58,289                 58,328                58,005                58,800
              
Diluted Earnings Per Common Share - GAAP $                 0.98  $                 0.94  $                 1.10  $                 0.84  $                 0.68  $                1.92  $                1.48
Adjustments:              
Net realized losses on sales of available for sale securities                        —                         —                     0.20                     0.15                         —                        —                        —
Gain on branch sale                        —                         —                   (0.34)                         —                         —                        —                        —
Non-core expenses1,2                        —                         —                     0.01                         —                         —                        —                    0.06
Tax on adjustments                        —                         —                     0.03                   (0.04)                         —                        —                  (0.01)
Adjusted Diluted Earnings Per Common Share - Non-GAAP $                 0.98  $                 0.94  $                 1.00  $                 0.95  $                 0.68  $                1.92  $                1.53
              

1 - Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.

2 - Non-core expenses in the Six Months Ended June 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.

 

NET INTEREST MARGIN ("NIM"), ADJUSTED         
(Dollars in Thousands)         
 Three Months Ended  Six Months Ended
 June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30,
 2025  2025  2024  2024  2024  2025  2024
Net Interest Income (GAAP) $       133,014     $       130,270     $       134,370     $       131,110     $       128,571     $       263,284     $       255,634   
Fully Taxable Equivalent ("FTE") Adjustment              6,199                  6,127                  5,788                  5,883                  5,859                12,326                11,655   
Net Interest Income (FTE) (non-GAAP) $       139,213     $       136,397     $       140,158     $       136,993     $       134,430     $       275,610     $       267,289   
              
Average Earning Assets (GAAP) $ 17,158,984    $ 16,960,475    $ 17,089,198    $ 16,990,358    $ 17,013,984    $ 17,060,278    $ 17,068,917  
Net Interest Margin (GAAP) 3.10 %  3.07 %  3.15 %  3.09 %  3.02 %  3.09 %  3.00 %
FTE Adjustment 0.15 %  0.15 %  0.13 %  0.14 %  0.14 %  0.14 %  0.13 %
Net Interest Margin (FTE) (non-GAAP) 3.25 %  3.22 %  3.28 %  3.23 %  3.16 %  3.23 %  3.13 %

 

RETURN ON TANGIBLE COMMON EQUITY - NON-GAAP
(Dollars In Thousands) Three Months Ended  Six Months Ended
 June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30,
 2025  2025  2024  2024  2024  2025  2024
Total Average Stockholders' Equity (GAAP) $   2,340,010     $   2,340,874     $   2,312,270     $   2,251,547     $   2,203,361     $   2,340,440     $   2,222,750   
Less: Average Preferred Stock          (25,125)             (25,125)             (25,125)             (25,125)             (25,125)            (25,125)            (25,125)  
Less: Average Intangible Assets, Net of Tax        (725,813)           (726,917)           (728,218)           (729,581)           (730,980)          (726,362)          (731,706)  
Average Tangible Common Equity, Net of Tax (Non-GAAP) $   1,589,072     $   1,588,832     $   1,558,927     $   1,496,841     $   1,447,256     $   1,588,953     $   1,465,919   
              
Net Income Available to Common Stockholders (GAAP) $         56,363     $         54,870     $         63,880     $         48,719     $         39,456     $      111,233     $        86,928   
Plus: Intangible Asset Amortization, Net of Tax              1,188                  1,206                  1,399                  1,399                  1,399                 2,394                 2,945   
Tangible Net Income (Non-GAAP) $         57,551     $         56,076     $         65,279     $         50,118     $         40,855     $      113,627     $        89,873   
              
Return on Tangible Common Equity (Non-GAAP) 14.49 %  14.12 %  16.75 %  13.39 %  11.29 %  14.30 %  12.26 %
EFFICIENCY RATIO - NON-GAAP              
(Dollars In Thousands) Three Months Ended  Six Months Ended
 June 30,  March 31,  December 31,  September 30,  June 30,  June 30,  June 30,
 2025  2025  2024  2024  2024  2025  2024
Noninterest Expense (GAAP) $         93,598     $         92,902     $         96,289     $         94,629     $         91,413     $       186,500     $       188,348   
Less:  Intangible Asset Amortization            (1,505)               (1,526)               (1,771)               (1,772)               (1,771)               (3,031)               (3,728)  
Less:  OREO and Foreclosure Expenses                  (29)                   (600)                   (227)                   (942)                   (373)                   (629)                   (907)  
Adjusted Noninterest Expense (Non-GAAP) $         92,064     $         90,776     $         94,291     $         91,915     $         89,269     $       182,840     $       183,713   
              
Net Interest Income (GAAP) $       133,014     $       130,270     $       134,370     $       131,110     $       128,571     $       263,284     $       255,634   
Plus:  Fully Taxable Equivalent Adjustment              6,199                  6,127                  5,788                  5,883                  5,859                12,326                11,655   
Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP) $       139,213     $       136,397     $       140,158     $       136,993     $       134,430     $       275,610     $       267,289   
              
Noninterest Income (GAAP) $         31,303     $         30,048     $         42,742     $         24,866     $         31,334     $         61,351     $         57,972   
Less:  Investment Securities (Gains) Losses                      1                          7                11,592                  9,114                        49                          8                        51   
Adjusted Noninterest Income (Non-GAAP) $         31,304     $         30,055     $         54,334     $         33,980     $         31,383     $         61,359     $         58,023   
Adjusted Revenue (Non-GAAP) $       170,517     $       166,452     $       194,492     $       170,973     $       165,813     $       336,969     $       325,312   
Efficiency Ratio (Non-GAAP) 53.99 %  54.54 %  48.48 %  53.76 %  53.84 %  54.26 %  56.47 %
              
Adjusted Noninterest Expense (Non-GAAP) $         92,064     $         90,776     $         94,291     $         91,915     $         89,269     $       182,840     $       183,713   
Less:  Non-core Expenses1,2                    —                         —                     (762)                       —                         —                         —                 (3,481)  
Adjusted Noninterest Expense Excluding Non-core Expenses (Non-GAAP) $         92,064     $         90,776     $         93,529     $         91,915     $         89,269     $       182,840     $       180,232   
              
Adjusted Revenue (Non-GAAP) $       170,517     $       166,452     $       194,492     $       170,973     $       165,813     $       336,969     $       325,312   
Less:  Gain on Branch Sale                    —                         —               (19,983)                       —                         —                         —                         —    
Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP) $       170,517     $       166,452     $       174,509     $       170,973     $       165,813     $       336,969     $       325,312   
Adjusted Efficiency Ratio (Non-GAAP) 53.99 %  54.54 %  53.60 %  53.76 %  53.84 %  54.26 %  55.40 %

1 - Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.

2 - Non-core expenses in the Six Months Ended June 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.

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